Why Valmont Industries (VMI) is a Top Momentum Stock for the Long-Term

Valmont Industries (VMI) is highlighted as a potential momentum stock, currently holding a Zacks Rank of #3 (Hold) and a VGM Score of A. VMI's shares have risen 1.8% in the last four weeks, supported by a Momentum Style Score of A and upward revisions to its fiscal 2025 earnings estimates, with the consensus increasing to $18.12 per share; the company also has a 7.1% average earnings surprise.

Analysis

Valmont Industries (VMI) is currently rated as a Zacks Rank #3 (Hold) but exhibits compelling momentum characteristics, underscored by a VGM Score of A and a Momentum Style Score of A. This suggests a strong alignment with momentum investment criteria despite the neutral overall rank. Supporting this, VMI's shares have appreciated by 1.8% over the past four weeks. The company's earnings outlook for fiscal 2025 has improved, with three analysts revising their earnings estimates upward in the last 60 days, leading to an increase in the Zacks Consensus Estimate by $0.11 to $18.12 per share. Furthermore, Valmont Industries has a track record of exceeding earnings expectations, boasting an average earnings surprise of 7.1%. The combination of a 'Hold' rank with top-tier Momentum and VGM scores, alongside positive earnings estimate revisions, indicates that while a broad buy signal isn't present from the rank alone, specific quantitative factors highlight underlying strength and positive market reception for the stock.

Key Decisions for Investors

• Investors, particularly those with a momentum-focused strategy, should consider Valmont Industries (VMI) for their watchlist due to its 'A' Momentum Style Score, recent positive share price performance, and favorable VGM score.
• Vigilant monitoring of future earnings estimate revisions and any changes to VMI's Zacks Rank is advised, as these are crucial drivers for potential outperformance, especially for a #3 (Hold) ranked stock possessing strong style scores.
• Despite the neutral Zacks #3 Rank, the positive trajectory in earnings estimates and the strong Momentum and VGM scores suggest potential for upside, aligning with the strategy of identifying 'Hold' rated stocks that still exhibit promising 'A' or 'B' style characteristics.